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Economic Recession Deepens with GDP contracts now 2.24 per cent

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The Nigerian economy plunged deeper into recession as gross domestic product (GDP) contracted 2.24 per cent (year-on-year) in real terms in the third quarter of 2016, from 2.06 per cent from the previous quarter.
Real GDP for the third quarter stood at about N1.78 trillion, the National Bureau of Statistics (NBS) said in its latest GDP Report published on Monday in Abuja.
The contraction of the economy in the third quarter was lower by 0.18 per cent points from the preceding quarter, according to the report.
The agency said the figure was also lower by 5.08 per cent points from the growth recorded in the corresponding quarter of 2015.
Details of the report showed that aggregate GDP, in nominal terms at basic prices, stood at about N26.6 trillion, against the N24.3 trillion in the third quarter of 2015.
“During the quarter, aggregate GDP stood at N26.6 trillion (in nominal terms) at basic prices, compared to the third quarter 2015 value of N24.3 trillion. Nominal GDP grew by 9.23 per cent. This growth was higher relative to growth recorded in the third quarter of 2015 by 3.22 per cent points,” the report said.
A review of the sectoral performance of the report showed that during the period, the Nigerian National Petroleum Corporation (NNPC) said the country’s oil production capacity averaged about 1.63 million barrels per day (mbpd), lower from the figures in the second quarter of 2016.
Consequently, the report said the real growth of the oil sector slowed by 22.01 per cent (year-on-year) in third quarter of 2016, representing a decline relative to growth recorded in same quarter of 2015 at 1.06 per cent.

As a share of the economy, the oil sector accounted for about 8.19 per cent of total real GDP, down from figures recorded in the corresponding period of 2015 and the preceding quarter of 2016 recorded at 10.27 per cent and 8.26 per cent respectively.
The growth in the non-oil sector, the report pointed out, was largely driven by the activities of agriculture (crop production), information and communication and other services.
The report said the 0.03 per cent growth in the non-oil sector in real terms in the third quarter of 2016, reversed the negative growth recorded in the first and second quarters of the year.
Sectoral contributions to the GDP during the quarter showed the agricultural sector accounted for 28.66 per cent; industries, 21.1 per cent and services, 50.2 per cent.